Activity Approvals Process

On this page

The Petroleum and Geothermal Energy Act 2000 licensing and approvals process consists of three stages:

Licensing

Environmental assessment and approval of environmental objectives

Activity notification and approval.

The steps involved in the three stages of the activity approvals process are characterised by the particular activity being proposed. The activity approvals process is divided into two types; the general activity approvals process, which includes exploration, retention, production and associated activities, and the pipeline activity approvals process which includes transmission pipeline projects.

Any pipeline proponent is required to seek a Preliminary Survey Licence to conduct surveys to establish likely routes, and to perform initial geotechnical, ecological and heritage surveys to confirm the suitability of the pipeline alignment.

Environmental Impact Report

In accordance with Section 97 of the Petroleum and Geothermal Energy Act 2000, Licensees are required to prepare an Environmental Impact Report for proposed regulated activities. This document addresses the potential threats and risks on the environment, and outlines the extent to which these threats are likely and manageable.

Under Regulation 10 of the Petroleum and Geothermal Energy Regulations 2013 the Environmental Impact Report is required to provide the following information:

a description of the activities to be carried out;

a description of the specific features of the natural, social/cultural and economic aspects of the environment which may be affected by the activities;

a description of the actual and potential events associated with the activities that could pose a threat to the various aspects of the environment (as per definition of environment provided in Section 4 of the Petroleum and Geothermal Energy Act 2000) including the likelihood of the events and the level of certainty in their prediction;

an assessment of the potential consequences of the above defined events on the various aspects of the environment;

detailed information on the extent to which the above potential consequences can be managed including information on their duration, size and scope; and

information on any consultation undertaken with the relevant land owner or occupier, relevant government agencies or other interested groups or individuals.

The information and material provided by the Environmental Impact Report must:

be balanced, objective and concise;

state any limitations that apply, or should apply, to the use of the information and material;

identify any area or issue in relation to which there is a significant lack of relevant information or a significant degree of uncertainty;

identify the sensitivity to change of any assumption that has been made and any significant risks that may arise if an assumption is later found to be incorrect; and

be presented in a way that allows a person assessing the information or material to understand how conclusions have been reached and allows the information or material to be used to make an informed decision on the level of environmental impact of a particular activity without the need to obtain additional technical advice.

Statement of Environmental Objectives

A Statement of Environmental Objectives is developed through an open, consultative process, based on information provided in the Environmental Impact Report. A Statement of Environmental Objectives may relate to either a specific activity carried out at a specific location; or a particular activity type (e.g. drilling, seismic activities, the construction and operations of facilities and pipelines) carried out within a specific region or land system.

For the purposes of the Petroleum and Geothermal Energy Act 2000 the definition of environment includes the natural, social, cultural and economic aspects of the area, locality or region.

A Statement of Environmental Objectives for a regulated activity must state the environmental objectives to be achieved in carrying out the specified activities, as well as the assessment criteria used to assess whether the objectives have been achieved by the licensee.

A Statement of Environmental Objectives must include objectives that relate to:

construction activities;

operational activities;

emergency response and management;

rehabilitation in cases involving a serious or reportable incident under Section 85 of the Petroleum and Geothermal Energy Act 2000;

decommissioning, abandonment and rehabilitation; and

dealing with the consequences of events associated with the relevant activities on the various aspects of the environment.

A Statement of Environmental Objectives must also include conditions and requirements for achieving the stated objectives, such as incident reporting requirements. For some objectives, which cannot readily be measured through quantitative assessment, particularly in relation to land and vegetation disturbances such as the restoration of well sites and seismic lines, techniques such as Goal Attainment Scaling have been adopted to provide such measurement. Guidelines outlining this process are on Guidelines and Policy.

These features of a Statement of Environmental Objectives provide transparency to stakeholders on what is required of the licensee in terms of its environmental performance.

It is a requirement, under Regulation 14 of The Petroleum and Geothermal Energy Act 2000, that a Statement of Environmental Objectives will be reviewed at least once in every 5 years. If this review identifies that a revision of the document is required, the document will be revised by the Minister (or cause the revision to be undertaken by the licensee) and then the statement is submitted for consideration under the Petroleum and Geothermal Energy Act 2000.

The performance of the licensee against the Statement of Environmental Objectives will be publicly disclosed annually on the Environment Register, in addition to the provision of Environmental Impact Reports, Statement of Environmental Objectives and details of the Minister's determination of the level of impact of all proposals.

Impact Classification

On the basis of the information provided in the Environmental Impact Report and in accordance with Section 98 of the Petroleum and Geothermal Energy Act 2000, the Minister, using a set of publicly developed and disclosed criteria, must classify the level of impact of any proposed activity.

The classification will either be low, medium or high and will be made in consultation with the Department of Planning, Transport and Infrastructure, the Department for Environment, Water and Natural Resources and the Environmental Protection Authority.

These consultation protocols have been established under various administrative agreements between the Energy Resources Division and these Departments. Copies of the administrative agreements currently in place are available in Administrative Arrangements.

The requirement for a period of public consultation is determined by the classified level of impact of the proposed activity on the basis of a set of publicly developed and disclosed criteria for making such a determination.

Low Impact Activity Assessment Process

The Energy Resources Division undertakes consultation internally with Government Agencies (including the Department of Environment, Water and Natural Resources, the Environment Protection Authority and, if relevant, the Department of Planning, Transport and Infrastructure, and SafeWork SA. Government consultation protocols and time frames are determined through Administrative Arrangements between the Energy Resources Division and the specific agency.

Medium Impact Activity Assessment Process

Where an activity is classified as medium impact it will follow the public assessment process described under section 101 in the Petroleum and Geothermal Energy Act 2000. The Energy Resources Division seeks community comment through a public consultation period, which is required to run for at least 30 business days. Additionally, the Energy Resources Division may invite submissions from organisations and/or persons who have particular interest in the area or region which is likely to be affected by the proposed activity.

All submissions on the Environmental Impact Report and draft Statement of Environmental Objectives made to the Energy Resources Division are kept available for public inspection on the Environment Register. The proponent is then required to address the issues raised by public submission/s and revise the Environmental Impact Report and draft Statement of Environmental Objectives accordingly, where required.

The Energy Resources Division reviews the revised versions of the Environmental Impact Report and Statement of Environmental Objectives and if the Environmental Impact Report and Statement of Environmental Objectives have been amended substantially, as a result of the public submissions, the Energy Resources Division will require the consultation process to be repeated.

High Impact activity Assessment Process

If a project is assessed as having a high environmental impact, the proposal is referred to the Minister responsible for the Development Act 1993 for an Environment Impact Assessment under Part 8 of that Development Act 1993.

Consultation

A proponent must consult with all relevant stakeholders during the project planning stage. The extent of consultation undertaken during this phase is a critical factor considered by the Energy Resources Division in determining the environmental impact classification.

The Energy Resources Division encourages the use of the Ministerial Council on Mineral and Petroleum Resources (MCMPR) endorsed guide located in Guidelines and Policy. This document sets out the key principles for effective liaison between the resource sector, the community and various stakeholders.

The level of consultation undertaken by the Energy Resources Division during the assessment and approval process for a proposed activity is determined by the impact classification. In the instance where an activity involves a Coal Seam Gas project, the project will be referred to the Independent Expert Scientific Committee to be part of the consultation process to align with the National Partnership Agreement (NPA) and SA protocol for IESC referral process.

Stage 3 - Activity Notification and Approval

In accordance with Regulations 18 and 19, licensees are required to notify, and where relevant, seek approval from the Energy Resources Division prior to commencing any regulated activity within a licence area. The requirements for low level surveillance operators and high level surveillance operators differ by the amount of information provided and the time frame it is provided in.

As part of its assessment, the Energy Resources Division will also advise licensees whether additional approvals from co-regulatory agencies are required in relation to specific activities. Notably, the Department of Environment and Water has provided a checklist in relation to its regulatory matters for licensee’s to use when planning activities. This checklist is publicly available on the Department of Environment and Water website.

Low Level Surveillance Operators (Regulations 18 and 20)

An activity notification for a low surveillance operator must, pursuant to the requirements of Regulation 18, be submitted to the Energy Resources Division at least 21 days before the proposed commencement date of the activity. As long as no landowner objections are received by the Minister, and the application is compliant, activities can commence at the end of the 21 day period.

High Level Surveillance Operators (Regulations 16, 19 and 20)

An activity notification pursuant to the requirements stipulated under Regulation 19 for all high surveillance activities must be provided to the Energy Resources Division for assessment and approval at least 35 days before the proposed commencement date of the activity in question. Information and material specific to the proposed activity pursuant to various sections of the Petroleum and Geothermal Energy Act 2000 and associated regulations must accompany the activity notification, as described in the Activity Notification Checklist (DOC).

Of particular note, with respect to environmental reporting obligations under Regulation 20(1)(g), an assessment is required to be provided by the licensee determining whether the proposed activity is covered by an existing and approved Statement of Environmental Objectives, in addition to detailing how the licensee will ensure that the proposed activity will satisfy the respective Statement of Environmental Objectives requirements.

Notice of Entry

In addition to the stakeholder consultation requirements in the preparation and approval of the Statement of Environmental Objectives, licensees are obliged under Part 10 of the Petroleum and Geothermal Energy Act 2000 to give notices of entry to all landowners 21 days prior to entering and commencing any activity on any land.

In accordance with the requirements of Regulation 22 of the Petroleum and Geothermal Energy Regulations 2013 the notice of entry must contain:

a detailed description of what will be undertaken

sufficient information to enable the landowner to reach an informed decision about the impacts and potential impacts the activities will or may have on the land

sufficient information on the use and/or consequential loss of use of the land by the landowner resulting from the activities.

Furthermore, Part 10 of the Petroleum and Geothermal Energy Act 2000 provides landowners with the right to object to entry within 14 days and to seek any compensation for loss of use or damage or potential loss of use or damage to the land.

Notice of Entry templates are provided below in accordance with Regulation 22.Notice of intent to enter land for preliminary petroleum exploration activities(DOCX 66KB) is primarily aimed at providing the Department of Environment, Water and Natural Resources with appropriate notification for reconnaissance surveys and for Work Area Clearance activities, for native title or heritage purposes and environmental surveys within regional reserves.